Fannie Mae reports on activities in 2009, changes outlook for 2010
In two separate reports released this week, Fannie Mae took a look at the past and made predictions for the future. The government-sponsored enterprise (GSE) released Helping Housing Recover: A Report on Fannie Mae’s Mission Performance, describing the company’s efforts to provide liquidity, stability, and affordability to the nation’s housing finance system.
According to the report, Fannie Mae provided $823.6 billion in funding to help keep the single-family and multi-family mortgage markets operating during 2009.
In Fannie Mae’s March 2010 Economic Outlook, released by the GSE’s Economics & Mortgage Market Analysis Group, continued recovery in housing is the key to a durable economic recovery. Fannie Mae said home sales will likely fall further in February, suggested by a sharp decline in the pending home sales index in January.
The GSE estimated that total mortgage originations would decline to $1.31 trillion in 2010, down from a projected $1.97 trillion in 2009, with a refinance share of 44 percent. Fannie Mae expects home sales to rebound in the second quarter. In the third quarter, the GSE expects a “payback,” as the tax credit will likely pull some of the demand forward. And by the end of the year, if the labor market improves as expected, sales should start to trend up on a sustainable basis.
For all of 2010, Fannie Mae projects total home sales will increase 9 percent, down from the 12 percent surge predicted in its previous forecast.
Source: DSNews.com, Brittany Dunn, (03/19/2010)